The Government of India has put on hold its directive requiring airlines to offer at least 60% seats on every flight without additional charges, pending further review. The decision follows strong objections from airlines and industry bodies, which warned of disruptions to fare structures and rising operational costs. The Civil Aviation Ministry said the rule would remain suspended until its full impact is assessed, meaning passengers will continue to pay for seat selection as before.
Policy Put On Hold
The Civil Aviation Ministry clarified that the order has been deferred until further notice, effectively maintaining the status quo for travellers. Airlines had raised concerns that mandating a large proportion of free seat selection would strain revenue models and complicate pricing strategies.
Industry stakeholders argued that such a move could lead to indirect fare hikes or reduced service flexibility, prompting the government to reconsider immediate implementation.
Why The Move Was Proposed
The policy was initially conceived as a relief measure amid rising aviation fuel costs. Escalating tensions in West Asia have pushed up global crude prices, directly impacting Aviation Turbine Fuel (ATF)-a key cost component for airlines.
Higher fuel prices typically translate into increased ticket fares, and the government sought to cushion passengers from additional charges such as paid seat selection.
Relief And Ripple Effects
Even as the seat rule has been paused, the government has offered partial relief to domestic carriers. It decided to limit the increase in ATF prices on domestic routes to 25%, roughly Rs 15 per litre, to ease cost pressures. However, airlines operating international routes will bear the full extent of the price rise.
The impact is expected to extend beyond air travel. Higher fuel costs could push up prices of goods transported by air, including medicines, electronics and other essential items, adding to inflationary pressures on consumers.
